CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 16-3 Preparing a Post-Closing Trial Balance

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 2 LESSON Balances of asset accounts 4.Balances contra asset, liability, and capital accounts POST-CLOSING TRIAL BALANCE 1 6 page Double lines 6.Totals 5.Word Totals 2.Accounts that have balances 1.Heading

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 3 LESSON 16-3 ACCOUNTING CYCLE FOR A MERCHANDISING BUSINESS ORGANIZED AS A CORPORATION page 497 (continued on next slide) 1.Source documents are checked, and transactions are analyzed. 2.Transactions are recorded in journals. 3.Journal entries are posted to the accounts payable ledger, the accounts receivable ledger, and the general ledger. 4.Schedules of accounts payable and account receivable are prepared from the subsidiary ledgers. 5.A work sheet is prepared from the general ledger.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 4 LESSON 16-3 ACCOUNTING CYCLE FOR A MERCHANDISING BUSINESS ORGANIZED AS A CORPORATION 6.Financial statements are prepared. page 497 (continued from previous slide) A post-closing trial balance of the general ledger is prepared. 8.Adjusting and closing entries are posted to the general ledger. 7.Adjusting and closing entries are journalized from the work sheet.